Strategy Plans $21 Billion Stock Offering to Acquire More Bitcoin
Strategy plans to issue Series A Perpetual Strife Preferred Stock in a public offering of 5 million shares, with a 10% annual dividend. Proceeds will be used for acquiring Bitcoin and general corporate purposes.
- Dividends paid quarterly, with compounded dividends increasing up to 18% per year if payments are delayed.
- Company can redeem shares if less than 25% remains or during specific tax events, based on liquidation preference and unpaid dividends.
- Holders have the right to demand repurchase at accumulated dividend prices upon fundamental changes.
- Initial liquidation preference set at $100, adjusting based on trading prices.
- Offering led by Morgan Stanley, Barclays, Citigroup, and Moelis & Company under SEC registration.
This announcement is not an offer to sell securities. Investors can access the prospectus via the SEC website or through the underwriters. Strategy aims to enhance its digital asset holdings and enterprise analytics solutions using these funds.